Demand in the GTA isn’t going away.
Population is set to reach new levels and increasing housing supply remains a key solution to address affordability issues.
TRREB’s highly-awaited 2022 Market Outlook & 2021 Year in Review is in its seventh year of sharing drivers and trends in the real estate market. This year’s report, The Post-Pandemic Future: Communities, Housing & Employment , focuses on housing, jobs and infrastructure.
Back by popular demand, our interactive digital digest uncovers even more insights. Explore highlights and watch videos on sales, average prices and listings for 2022, as well as the latest polling results from prospective buyers and sellers.
On the toes of the digital digest and report release, over 3,000 attendees registered to hear from industry insights and experts at the Market Outlook & Year in Review virtual event. Read on to discover key takeaways from the event.
2022 began where 2021 left off. Supply is tighter than ever. It is no surprise then that the lack of homes in the market will push the average price of a home in the GTA to hit a new record of $1,225,000.
TRREB CEO John DiMichele opened the event with remarks about the record-breaking number of sales in 2021. “Who would have been able to predict that amount of activity considering we were in the throes of an unprecedented pandemic?” John DiMichele then added, “Our calls for increased supply went unheard for several years and now that it has reached a crisis stage, we have every level of government promising to address the supply problem.”
TRREB’s Chief Market Analyst Jason Mercer also pointed out the extreme lag in new listings. “When we think about why we are seeing such strong price growth and strong competition, it really is on the inventory side of the market. If we look at where supply stood at the end of last year, there were only 3,200 active listings on TRREB’s MLS® System.”
In a discussion with Jason Mercer, Ipsos Senior Vice President Sean Simpson shared the recent polling results with perspectives from buyers and sellers.
Fewer people are exiting the real estate market. “Thirty-five per cent of sellers said they are either very likely or somewhat likely to sell their home, and that’s one point down from last year, and down four points from two years ago, so that tightening of supply will likely continue,” said Sean Simpson.
The event also featured a talk on employment and navigating the new normal, and how real estate patterns will shift in response. TRREB partnered with the Toronto Region Board of Trade and Maru Public Opinion to survey employees currently working from home.
“Employment and work patterns will be permanently transformed. There’s pent-up demand for in-person interaction and collaboration. But, hybrid work models are here to stay,” said Toronto Region Board of Trade Policy Director, Energy, Environment & Land Use Craig Ruttan. This means policies to balance the desire to work from home while also making use of the office are needed.
On the other hand, Maru Public Opinion Executive Vice President John Wright said, “If employees are forced to return to the office, 38 per cent could start looking for another job and 24 per cent may quit altogether, which means, from the data, roughly one-in-ten may stand their ground and not return to their previous office space if forced to do so.”
Ultimately, a strong need to build more homes sooner and navigating new work patterns lies ahead in a post-pandemic future.